How Dangerous Is Your Warranty Insurance?

Saturday, 14. August 2010

Hi, Graham Hill here, thank you so much for visiting my blog, I hope you learn a lot and as a result end up driving a great car. In order to do so you can get all the information you need by buying my book, An Insider Guide To Car Finance or use me to finance your next car. Happy driving.

If you are looking to take out an aftermarket vehicle warranty (that’s a warranty that you take out when the manufacturer’s warranty has run out) you can check to see if the provider has signed into the code of practice provided by the auto watchdog Motor Codes, unless it’s an AA warranty and I can tell you that they aren’t. The code was set up to help customers by ensuring that the warranties provided by the warranty suppliers signed into the code use ‘plain English’ in their terms and conditions and also ensure that the claims procedures are simple. If you are a customer of one of the warranty companies signed into the Code there’s free advice and help with disputes. Currently the Financial Ombudsman Service deals with around 200 complaints each year concerning automotive warranties. Two of the large warranty companies, Warranty Direct and Warranty Wise are signed into the code but AA Warranty, Mapfre Abraxas and MB&G have all refused to sign even though Motor Codes have tried hard to get them to join in. Auto Express have criticised AA Warranty because it applies a consequential loss clause which means it won’t pay out for additional damage caused by a failed part. Other failures were highlighted so it seems, as with finance, the top names don’t always provide the best product. A spokesman said ‘We believe we already provide service that exceeds the requirements of codes of practice in the market.’ It would seem that Motor Codes, Auto Express and I beg to differ. Ever had a warranty claim that didn’t pay out? If so let me know? Or if you have had a good experience following a claim also let me know? By Graham Hill

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10 Responses to “How Dangerous Is Your Warranty Insurance?”

  1. Wayne Russell Says:

    Dont touch Mapfre with a barge pole. I bought a car from Available Car just 8 weeks ago. They pushed the warranty and I fell for it. 8 weeks later I am driving along and the engine starts misfiring. Its a 2008 Vauxhall Vectra with just 26000 on the clock. I contact Mapfre and they tell me I have to take it to a Vauxhall Dealer for a diagnostic test. I have to tell the dealer to ring Mapfre with details of the fault and Mapfre will then issue a claim reference That was nearly a week ago. The test revealed that there was a faulty EGR valve which is something to do with the recirculating of exhaust gases. ie something that a driver would never go near or change or maintain. Mapfre then refuse to issue a claim reference and tell me I have to instruct the dealer to identify what is wrong with the EGR valve. I have to pay for this and the diagnostic test up front. The dealer tries to be as helpful as they can be but tell me all they can say is the EGR valve is faulty and needs replacing. So a week later I have no car and I have had to pay for the diagnostic test and again for the dealer to remove the defective part so they can tell me that there is nothing further they can say except that it need replacing. Mapfre have no interest in looking after their customers. Their telephone staff are hostile and unsympathetic and appear to have just one objective … to get out of paying for anything. I am seeing Trading Standards next week. The policy they issue states that they cover all mechanical and electrical parts except routine items such as tyres brakes shoes and items that are normally subject to wear and tear.

  2. Says:

    Hi Wayne, Would be interested to know how the meeting with Trading Standards went, did they help? Graham Hill

  3. Ian Says:

    Hi Wayne

    Available Car now provide 3 months warranty with all their cars, so they should have fixed this for you.

    Thanks for sharing your experience with Abraxas – I will not be buying the warranty!

    I understand this information might be a bit late for you, but here it is so anyone else with an Available Car might benefit.

    Ian H

  4. Robert Chamberlin Says:

    Mapfre Abraxas, if you think you are covered on there warranty insurance, be ware. I had a problem with oil getting into the expansion tank, the engine was runnig fine with no other issues. It was discovered that oil was seeping passed the head gasket. Mapfre says sorry not covered as its due to age deterioation, my servicing garage had sent the head to an engine specialist to have the head checked and skimmed I went along to them they inspected the head gasket and confirmed the head gasket had not failed but the oil had leaked by due to insuffficent torque being applied to it. I reported this to Mapfre. At his point they decided to send another engineer to report on the engine and gasket, he produced an ambiguous report and part of the conclusion stated due to general deterioration. The reply came back not covered. (I since found out the the assessors they used has worked for them before) I commissioned, through the AA, a Dekra engineer to inspect the parts and he confirmed that it could not be age related. I sent a copy of his report to Mapfre, that was a week ago and have not heard a thing yet.

  5. Tim Painter Says:

    Mapfre warranty insurance is not worth the paper it is written on. I purchased a BMW 118d and was sold the 5 Point warranty. a year into the warranty period and my gearbox failed.. I was told to take it to any VAT registered garage and they would sort the procedure. My excellent mechanic diagnosed the failure and also found that the Gear box was NONE serviceable and required a replacement. Mapfre insisted the gearbox was returned to there appointed inspectors first. the gearbox was found to have damage to the first gear and was indeed Bond economical repair. However I was left to pay the inspection fee of £204…
    Mapfre also refused the claim, putting it down to wear and tear… this company are a bunch of crooks and don’t deserve any business. they are just interested in wriggling out of any claim. Holdcroft Renault sold me the bogus policy and should be ashamed…

  6. Pauline Says:

    My Brother has the same experience as you guys. He purchased an Audi A4 in March 2013 through Available Car who were great at pushing the Warranty with Mapfre. In April this year his car suffered a massive mechanical breakdown and now Mapfre won’t pay out. Initially they said their assessor found the incident was caused by driver error but as Audi has proved this is not the case, they are now saying they wont pay out as he needs to go through his own car insurance who should settle the claim due to a Total Loss (clause 11 of their T&Cs). What is the point in taking out warranty cover if they wont pay out? I contacted a solicitor who said MAPFRE are breaching their contract by referring my brother to his car insurance and MAPFRE contacted the Ombudsman who said they have insufficient information to deny the claim and should pay, but they still refuse. Our fight goes on!

  7. Mr Jones Says:

    I also bought a car from Available Car and like a fool also took the warranty that was with MAPFRE. 4 months after buying the car it broke down, good job I pay extra for the extended 5 star warranty I thought.
    Called the recovery to be told 1 hour, over 2 hours later the truck turned up, turbo had gone on the car so was recovered to the MAPFRE approved garage. Turbo was removed, inspected and the report said it failed due to oil starvation,no reason why or how and nothing else wrong with the car that could have caused it. MAPFRE refused to pay out so £1300 later as far as I am left with a worthless piece of paper with warranty writen on it. Waste of my time and money, MAPFRE as far as I am concerned are the biggest con artists I have ever come across.

  8. Mr B Says:

    Mapfre needs to be shutdown, fell for their extended warranty offered by Available Car, I’ve been ripped off by them. Read their policy and you will see that there is no circumstances in which they will ever replace a broken component.

    A component will either wear out or fail. But the reasons for failure in their policy covers every possible reason why the part might fail. Be it a manufacturing fault (as in my case) or inherent design faults or any other excuse they provided in their policy. There’s no payout of any reason. So in short it’s a con and they are just ripping people off. Available Car should stop using these cowboys.

    Has anyone had any success with the Trading Standards, the Ombudsman have proven useless for me and just restated Mapfre (won’t pay for nothing) policy.

  9. Miss young Says:

    Bought my car from available car 4 years ago and took out extended warranty for peace of mind against any unexpected bills for repairs. Now my extended warranty has kicked in and had an issue with auxiliary tension belt , thought I was covered by my warranty but oh no because this was found on a health check of car and not due to a break down MAPFRE are classing it as a manufacturer fault so not going to cover it .Still waiting on a call back from there complaints department obviously their customers don’t matter to them !

  10. Mr Short Says:

    I too have had a very bad experience to date with MAPFRE ABRAXIS.
    My car was repaired 18 months ago approximately 30k miles later the clutch thrust bearing has disintegrated again causing catastrophic damage to the tune of over £6,500 worth of damage. I have requested MAPFRE ABRAXIS to send me their engineers reports. But the are stating they don’t want to pay out to repair due to ware and tare. And have yet to send me the engineers reports.
    They replaced the parts with the car being four years ol and 70k on the clock, but are now refusing to repair the damage caused by this replacement part with only an additional 30k after 18months.
    Surely they are contradicting their previous actions and failing to adhere to their T&C’s as laid out in the policy.
    I’d be very grateful to hear ASAP from anyone who has challenged them and got MAPFRE ABRAXIS to settle their clam.
    Kind regards
    Mobile 07977870554

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